Fundamental Oil Report (2010-07-02)

By IBT Staff Reporter On 07/02/10 AT 4:20 AM

NewsCrude hovers above $73 ahead of the US jobs reportPreviousForecastAnalysisCrude today is hovering above $73 per barrel, so far down 7.2% this week due to the sluggish pace of economic growth in the US and China. The market is waiting for the release of the US jobs report that is expected to confirm weaker employment pace which has been the heavy weight on the market this week.

Crude as of 02:55 EST was trading above $73 recording its highest around $73.38 and lowest around $72.65 per barrel. Meanwhile, yesterday black gold slumped from opening levels around $75.25 recording its highest around $75.37 and lowest around $72.02 per barrel to settle at 72.55.

On the other hand, the drop oil witnessed in the past week is prompting renewed fears that the two largest energy consumers in the world, the US and China, are suffering slower growth pace. As for the US economy it is expected to have shed 130,000 jobs in June as investors are eyeing the release of the non-farm payrolls today.

The anticipated Jobs report expected later today is expected to show a higher unemployment rate reaching 9.8%, along with the weak payrolls figures all expected to weigh on crude due to the expectations of weaker demand outlook on waning recovery.

As for NYMEX as of 03:00 EST; motor gasoline fell to $199.660 per gallon by $0.05; heating is trading around $194.340 per gallon rising by $0.490; whereas natural gasoline plummeted to $4.838 per 1000 cubic feet by $0.016. In London, Brent futures climbed by $0.160 to record $72.500.